Principal Component Value at Risk: an application to the measurement of the interest rate risk exposure of Jamaican Banks to Government of Jamaica (GOJ) Bonds Mark Tracey1 Financial Stability Department Research & Economic Programming Division Bank of Jamaica Abstract This paper develops an effective value at risk (VaR) methodology to complement existing Bank of Jamaica financial stability assessment tools. This methodology employs principal component analysis and key rate durations for assessing
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Case Problem 1: Measuring Stock Market Risk As indicated by the case study S&P 500 index was use as a measure of the total return for the stock market. Our standard deviation of the total return was used as a one measure of the risk of an individual stock. Also betas for individual stocks are determined by simple linear regression. The variables were: total return for the stock as the dependent variable and independent variable is the total return for the stock. Since the descriptive
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The impact of Vietnam exchange rate’s fluctuation on trade balance The reduction of domestic currency price may increase the competitiveness of domestic goods. The increase of nominal exchange rate can make the real exchange rate Increase‚ which will stimulate export and restrict import. It means that the trade balance will be improved. When the rate rises‚ the price of export is cheaper by counting in foreign currency‚ and the price of import in domestic currency increases‚ which is called the
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numerous of different risks people are faced with throughout their life. In some cases risks are what help define who we are‚ or are simply just obstacles that conquer us or we conquer. In our lives‚ it is important to exercise self-command. However‚ we should not be so concerned with the future that we stifle the present. Some people have found that by taking risks it has left them either dead‚ with nothing at all‚ and others have found it has only brought them great things. A risk that I have taken
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Risk Taking: A Corporate Governance Perspective ACKNOWLEDGEMENTS The genesis of this book lies in the teaching materials prepared for IFC’s Risk Governance Workshops conducted in 20 developing countries during the 2010–2012 time period by the book’s authors. The book and workshops also benefited from the contributions of Torben Andersen of Copenhagen Business School and Zur Shapira of New York University’s Stern School of Business. The contents of the book reflect this team’s years of risk
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Los Gatos‚ California. Netflix is a company that provides online movie rental subscription services in the United States. The company offers its subscribers access to a library of movie‚ television‚ and other filmed entertainment titles on digital versatile disc (DVD) and Blu-Rays. Its members can get DVDs delivered to their homes and can instantly watch movies and TV episodes streamed to their TVs and PCs. It also partners with consumer electronics companies to offer a range of devices that can
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Chapter 2. Question 4. How would you measure risk of being a victim? I would measure the risk of being a victim by incorporating the NCVS summary findings for 2009. This survey gives me a broad range of information to use to minimize the risk of being a victim of a crime. It gives us great information such as the following: 1. Gender: men are a little more being victimized then women. 2. Reporting: almost half of the crimes were only reported to police. 3. Race: the highest with 27% for 1000 persons
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ESSAY 1 – DAVID MARQUES BENEFITS AND RISK OF THE USE OF NEW TECHNOLOGIES‚ IN PARTICULAR‚ THE COMPUTERS Nowadays interaction with computers has become an integral part of daily routine for millions of people. Whatever career you choose to follow‚ you will probably be a frequent user of computers. IT (Information Technology) has become progressively more important in our society and many jobs are changing. There are some benefits and some risks associated to news technologies‚ in particular‚ the
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Conducting a High Risk Traffic Stop For an Officer of the law to perform a safe and effective high risk stop they must be precise and proficient at the skill. A “High Risk” Traffic Stop is any traffic stop where the officer has a strong reason to believe that the driver or any person in the car has committed a serious crime or a Felony and/or is armed and dangerous. The officer must follow the Six Steps which include Initial Tactics‚ Initial Instructions‚ Removal of Occupants‚ Control‚ Custody from
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Exchange rate determination is Two-way process and following are factors that Influence Exchange Rates Floating rates are determined by the market forces of supply and demand. How much demand there is in relation to supply of a currency will determine that currency ’s value in relation to another currency. For example‚ if the demand for U.S. dollars by Europeans increases‚ the supply-demand relationship will cause an increase in price of the U.S. dollar in relation to the euro. There are countless
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